The W. Edwards Deming Institute Blog

Posts Tagged ‘executive pay’

Huge Payments to Executives for Good Luck

A recent Harvard Law School Forum on Corporate Governance and Financial Regulation article on the finding that: 90 Cents of Every “Pay-for-Performance” Dollar are Paid for Luck. I agree that mainly we award senior executives huge pay based on luck and the natural result of the organization they are a part of. It seems there […]

Peter Drucker Advocated a Ratio of 20 to 1 for CEO to Average Worker Pay

Dr. Deming didn’t directly address executive pay as far as I know. Executives were paid well and without much detrimental impact on companies historically. In the 1980s many CEOs started treating corporate treasuries as personal bank accounts and problems exploded. Peter Drucker had no issue with high and reasonable CEO pay, as things became more […]